M-real Corporation issued a 500 million Eurobond on 27.3.2006
Issue Price: 98.655 %
Maturity: 1 April 2013
Interest Rate
7.25% per annum payable semi-annually in arrear on 1 April and 1 October of each year, beginning on 1 October 2006. The rate of interest payable on the Notes will be subject to adjustment from time to time. In the event that M-real’s corporate rating is downgraded by one or more Rating Agency, the rate of interest payable on the Notes will be increased by 0.25% per Notch per Rating Agency, with effect from the first Interest Payment Date following the date of such downgrade. In the event that M-real’s corporate rating is upgraded by one or more Rating Agency, the rate of interest payable will be decreased by 0.25% per Notch per Rating Agency, with effect from the first Interest Payment Date following the date of such downgrade, provided that in no circumstances will the rate of interest be lower than 7.25% per annum.
Redemption
Non callable for life. However, M-real may redeem all the Notes at a price equal to their principal amount plus accrued and unpaid interest upon the occurrence of certain changes in tax law.
Change of Control
Put at 101% of par plus accrued and unpaid interest if M-real experiences a Change of Control and is downgraded within 90 days by one or more Rating Agency.
Ranking
The Notes are senior unsecured obligations of M-real and rank equally in right of payment to all existing and future senior unsecured indebtedness of M-real. The Notes are not guaranteed.
Listing
The Notes are listed on the Official List of the Irish Stock Exchange.
Arrangers
Joint Lead Managers: Barclays Capital and Deutsche Bank, Co-Managers: BNP Paribas and SEB Merchant Banking.